Topic: Would you buy a condo in a building built on leased land?
Would you buy a condo in a building built on leased land?
The development planned for Pier 1 of Brooklyn Bridge Park will apparently be built on leased land. This article http://www.brooklynpaper.com/stories/34/32/dtg_bridgeparkhotel_2011_08_05_bk.html says “As part of the project, developers would get a 98-year lease after building a 170- to 225-room hotel, a 150- to 180-unit residential building, and creating at least 300 parking spaces, public restrooms and park storage facilities.”
Would you buy a condo in this development that is on leased land? Also, the building will have special taxes earmarked to maintain the public park. Will these taxes be additional to regular real estate taxes? The above article says “As part of that funding plan, the city will collect ground rent and property taxes earmarked for the 85-acre greenspace from Pier 1 and future high-rises at John Street in DUMBO and the southern leg of the park at Pier 6.”
Brownstoner also reported about the John Street Con Ed site being sold to Brooklyn Bridge Park and the land to be leased to a developer to build a residential building. Again, what are the concerns on buying a condo on leased land? And will common costs and taxes be higher in these properties?